Jewellery major Joyalukkas targets $2 bn biz by 2012

ET BureauAug 10, 2009, 01.38pm IST

THIRUVANANTHAPURAM: Fluctuating gold prices present a minefield for gold jewellery buyers, but jewellery major Joyalukkas expects business to follow a northward trajectory in the near future, and has targeted a $ 2 billion business volume by March 2012.

Significantly, 60% of that volume is expected to come from Joyalukkas' operations in the Gulf, headquartered in Dubai, where demand is strong from a bouquet of nationalities including Indian, Pakistani, Bangladeshi and Filipino.

"Across the industry, the sharp fluctuations in gold prices are proving to be a deterrent for gold jewellery buyers, but the fact also is that gold is seen as hard currency and people continue to buy it. From December 2008 to March 2009 jewellery sales were slack but since April things have begun to look up", Joyalukkas chairman Joy Alukkas told ET.

Joyalukkas had business volumes of Rs 1,450 crore from its India operations in 2008-09, which is projected to touch Rs 4,000 crore in 2011-12, at which time the Gulf operations are expected to gross Rs 6,000 crore.

The branded jewellery chain, which opened on outlet each in Podicherry and Thiruvananthapuram recently to take its total network in India to 17, is planning to more than double its reach across the country by March 2012.

"By fiscal 2012, we plan to add 25 outlets more, and may consider an IPO", Mr Alukkas said. The group's existing global network includes 72 outlets in eight countries, with a presence in the UK and the Middle East besides India. The group has also diversified into retail, real estate development, currency exchange and IT services.